New Century Resources Limited provided an update on Century production and operational ramp up during the December quarter of 2019. Overall zinc metal output increased by 7% during the December quarter, with 28,123t of zinc metal produced in 57,000t of concentrate grading 49.0% zinc (compared to 26,171t zinc metal in 53,500t of concentrate at 49.0% zinc during the September Q). Silver content of 162g/t in concentrate was an 8% improvement on the previous quarter. Focus for the quarter was on commissioning and stabilisation of the upgraded scavenger circuit within the processing plant. The upgrade was delivered approximately three weeks ahead of schedule and on budget in late October, with the slurry commissioning process taking approximately six weeks before stability of operations resumed. Quarterly average recovery was 49% (vs September Q average 48%), outside of the commissioning period of the scavenger circuit the operations were typically achieving recoveries in the range of 50-54%. Concentrate quality has also been maintained, with zinc grade average of 49.1% (vs September Q average 49.0%). As per previous quarters, Century concentrate continues to receive relatively minor impurity penalties and treatment charges that are in-line with current market rates. From a mining perspective, the average mining rate increased 7% quarter-on-quarter (2.00Mt December Q vs 1.87Mt September Q). As shown in Figure 3, the mining rate has progressively increased throughout the quarter to a current rate of ~8.9Mtpa. The mining rate remains on track for expansion to 12Mtpa over the next two quarters. The average mined grade during the quarter was 2.87% Zn, which continues to reconcile strongly with the Ore Reserve model and mine plan. Overall C1 costs for the operations achieved a quarter-on-quarter reduction of 3% for the December quarter to $0.96/lb payable zinc metal including treatment charges. New Century has now achieved a progressive C1 cost reduction of 37% from the second quarter of fiscal 2020, despite treatment charges increasing by ~89% more over the same period. New Century anticipates continued reduction in C1 costs during the March 2020 quarter, through increased metal production from the upgraded rougher circuit, which provides more efficient utilisation of the fixed cost base of operations (~70% of site costs are fixed and unchanged with increased throughput). Treatment charges are also anticipated to reduce in the medium term in line with increasing zinc smelter output, particularly in China. Current spot treatment charges are approximately $0.20/lb (133%) above the 10-year average. The Company is nearing completion of its capital expenditure program for the planned the expansion to 12Mtpa, which is now approximately 73% complete. ~$13 million in further expansion and sustaining capital expenditure is expected to be incurred throughout fiscal 2020. New Century maintains total capital available of ~$61 million, comprising the recently announced working capital debt facility expansion ($40 million), sale of the Company's minority holding in the cattle business ($9.8 million) and quarter end cash (~$12 million). The Company's remaining fiscal 2020 expansion and sustaining capital is anticipated to be completed utilising existing available capital.

The company provided production guidance for the quarter to March 2020. March 2020 quarter operational guidance is 29,000t - 35,000t zinc metal at C1 costs of $0.85/lb - $0.95/lb payable zinc metal including treatment charges.